1 EM Update Presented to the National Governors Association Federal Facilities Task Force Dr. Inés Triay Principal Deputy Assistant Secretary for Environmental Management June 10, 2008

2 With your support and advice, EM manages the largest environmental cleanup program in the world ,000 Workers 4,500 facilities to cleanup/demolish Some of the most dangerous substances known to humanity 80+ million gallons of liquid radioactive waste.

3 Our priorities... Reduce risk while maximizing regulatory compliance –Treat radioactive liquid waste –Consolidate and disposition nuclear materials – plutonium, uranium, and spent nuclear fuel –Dispose of transuranic and low-level waste –Clean up contaminated soil and groundwater –Decontaminate and decommission unneeded facilities Strengthen program and project management –Implement National Academy of Public Administration recommendations –Independently verify project baselines – scope, cost, schedules –Strive for “Best in Class” capability –Implement a more effective procurement process –Develop and deploy needed technologies –Focus on project execution Risk Compliance Program & Project Management #1 Priority: Safety

4  Complete all shipment of high activity transuranic waste from Los Alamos to WIPP in FY08  Begin shipping remote/contact handled transuranic waste from Oak Ridge to WIPP in FY08  Complete shipment of all EM remote handled transuranic waste at Idaho to WIPP in FY08  Complete shipment of transuranic legacy drums at Savannah River to WIPP in FY09  Complete disposition of legacy low-level, mixed low-level and PCB waste at Paducah in FY09 Disposition of Legacy Waste: We are making significant cleanup progress… Tank Waste Processing:  Grout and close seven underground tanks at Idaho in FY08  Continue construction of the Sodium Bearing Waste Treatment Facility at Idaho and the Salt Waste Processing Facility at Savannah River through FY09

5  Complete K-West sludge containerization at Hanford in FY08  Begin disposition of surplus non-pit plutonium at Savannah River in FY08  Complete consolidation of Hanford plutonium at Savannah River in FY09  Complete all wet to dry spent fuel transfers at Idaho by the end of FY09  Complete construction and start operations of the Depleted Uranium Hexafluoride (DUF6) Conversion Facilities at Portsmouth and Paducah by the end of FY09  Finalize the design for uranium-233 blend down equipment and initiate Building 3019 modifications at Oak Ridge by the end of FY09 Cleanup progress…contd. Consolidation and Disposition of Surplus Plutonium, Spent Nuclear Fuel, and Uranium:

6  Complete decontamination and decommissioning of Test Area North at Idaho in FY08  Complete demolition of K-East basin at Hanford in FY08  Begin operations of enhanced groundwater remediation for hexavalent chromium at Hanford in FY09  Demolish the west wing of the K-25 processing facility in Oak Ridge in FY09  Complete cleanup at more than 50 contaminated soil and “industrial release” sites associated with former Nevada Test Site operations in FY09 Soil and Groundwater Remediation and Decontamination and Decommissioning: Site Cleanup Completions:  Complete cleanup of four sites in FY08 and two more in FY09 Cleanup progress…contd.

7 Bringing us closer to our destination... Plutonium packaged for long-term disposition Enriched uranium packaged for disposition Pu and U residues packaged for disposition Depleted U and U packaged for disposition Liquid waste eliminated Liquid waste tanks closed High-level waste packaged for final disposition SNF packaged for final disposition Transuranic (CH and RH) waste disposed Low-level/mixed low-level waste disposed Material access areas (MAAs) eliminated Nuclear facility D&D completions Radioactive facility D&D completions Industrial facility D&D completions Remediation complete Geographic sites eliminated % of lifecycle total projected to be completed through FY EM Performance Metrics Completed

8 Issues to be resolved... Regulatory Compliance The Administration recognizes EM’s FY 2009 budget request would not enable the Department to meet some of the milestones contained in agreements that have been negotiated with regulators over many years. Milestones Incomplete knowledge of complexity, inconsistent performance, overly optimistic assumptions, and emerging technical barriers have been impediments. Tools for Resolution Independently audited cost and schedule baselines, life-cycle planning estimates, and “analytical building blocks” will provide a basis for conducting credible and defensible analyses. Path to Resolution Using these tools, we will engage in meaningful dialogue with regulators, stakeholders, and Tribal Nations to assess existing priorities and mutually identify opportunities to complete cleanup. ABB Milestone

9 What EM delivers... Safety Ensures safe and secure conditions for all planned operations. Risk Prioritization Fully funds our most costly and high-risk projects. Risk Reduction Incorporates soil/groundwater and decontamination and decommissioning and remediation. Waste Disposal Progress Continues progress to process and dispose of waste. Key Departmental Missions Supports special nuclear material processing and disposition.